ASX Penny Stocks To Watch In April 2025

The Australian market has shown resilience, with the ASX200 bouncing back to pre-tariff levels despite looming US tariffs on key sectors such as copper and pharmaceuticals. In this climate of cautious optimism, investors might find opportunities in penny stocks—companies that are smaller or newer but can offer substantial growth potential at lower price points. While the term "penny stocks" may seem dated, these investments continue to hold promise when supported by strong financials and robust fundamentals.

Top 10 Penny Stocks In Australia

Click here to see the full list of 987 stocks from our ASX Penny Stocks screener.

Let's review some notable picks from our screened stocks.

Macmahon Holdings (ASX:MAH)

Simply Wall St Financial Health Rating: ★★★★★☆

Overview: Macmahon Holdings Limited offers surface and underground mining, mining support, and civil infrastructure services to mining companies in Australia and Southeast Asia, with a market cap of A$580.66 million.

Operations: The company generates revenue from providing surface and underground mining, mining support, and civil infrastructure services across Australia and Southeast Asia.

Market Cap: A$580.66M

Macmahon Holdings Limited has recently secured a significant contract extension at the Byerwen coking coal mine, adding approximately A$900 million to its order book without requiring new capital expenditures. Despite this positive development, the company faces challenges such as declining net profit margins and negative earnings growth over the past year. The company's Return on Equity remains low at 7%, and its board of directors is relatively inexperienced with an average tenure of 1.2 years. However, Macmahon's debt level is satisfactory, with strong coverage by operating cash flow and interest payments well covered by EBIT.

• Jump into the full analysis health report here for a deeper understanding of Macmahon Holdings.
• Learn about Macmahon Holdings' future growth trajectory here.

Race Oncology (ASX:RAC)

Simply Wall St Financial Health Rating: ★★★★★★

Overview: Race Oncology Limited is a clinical stage biopharmaceutical company focused on developing treatments for cancer patients with unmet needs, and it has a market cap of A$176.33 million.

Operations: The company's revenue is primarily generated from its operations in Australia, amounting to A$5.25 million.

Market Cap: A$176.33M

Race Oncology Limited, with a market cap of A$176.33 million, is navigating the complexities of clinical trials for its RC220 drug in combination with doxorubicin targeting advanced solid tumors. Recent developments include site activations and approvals across Australia and Asia, enhancing trial flexibility through a Bayesian design. Despite being pre-revenue and unprofitable, Race's financial position is stable with sufficient cash runway exceeding three years based on current free cash flow trends. However, challenges persist as earnings are forecasted to decline by 16% annually over the next three years while revenue growth is anticipated at 34.62% per year.

• Dive into the specifics of Race Oncology here with our thorough balance sheet health report.
• Assess Race Oncology's future earnings estimates with our detailed growth reports.

Southern Cross Electrical Engineering (ASX:SXE)

Simply Wall St Financial Health Rating: ★★★★★★

Overview: Southern Cross Electrical Engineering Limited offers electrical, instrumentation, communications, security, and maintenance services to the resources, commercial, and infrastructure sectors in Australia with a market cap of A$482.55 million.

Operations: The company generates revenue of A$693.73 million from its electrical services segment.

Market Cap: A$482.55M

Southern Cross Electrical Engineering Limited, with a market cap of A$482.55 million, demonstrates robust financial health as its short-term assets exceed both short and long-term liabilities. The company reported significant earnings growth of 42.3% over the past year, surpassing industry averages, and it has maintained high-quality earnings without debt concerns. Despite a low return on equity at 14.6%, the management team is seasoned with an average tenure of 12.5 years, contributing to stable operations. Recent results show increased sales and net income for H1 2025 compared to the previous year, alongside dividend increases reflecting improved profitability prospects.

• Navigate through the intricacies of Southern Cross Electrical Engineering with our comprehensive balance sheet health report here.
• Evaluate Southern Cross Electrical Engineering's prospects by accessing our earnings growth report.

Taking Advantage

• Click here to access our complete index of 987 ASX Penny Stocks.
• Interested In Other Possibilities? These 13 companies survived and thrived after COVID and have the right ingredients to survive Trump's tariffs. Discover why before your portfolio feels the trade war pinch.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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